Krystal receives consents to amend 10¼% notes, changes offer

New York, May 21 - The Krystal Co. said it received the necessary consents to amend the indenture for its $60.98 million principal amount of 10¼% senior notes due 2007.

By the expiration of the consent solicitation at 5 p.m. ET on May 21, the company had received consents from holders of $48.38 million of the notes or 79.3%.

The company also modified its offer. Holders who tender after the consent deadline will now receive $1,017.08 per $1,000 principal amount instead of $1,000 per $1,000 principal amount.

Krystal said on May 11 it had begun a cash tender offer for any and all $60.98 million principal amount of 10¼% notes and had also begun soliciting noteholder consents to proposed indenture changes.

The company set a consent deadline of 5 p.m. ET on May 21 and said the tender offer would expire at midnight ET on June 7, with both deadlines subject to possible extension.

Krystal, a Chattanooga, Tenn.-based restaurant chain operator, said that it will pay total consideration to holders tendering their notes at or before the consent deadline of $1,017.08 per $1,000 principal amount of notes, which will include a consent payment of $17.08. Holders tendering their notes after the consent deadline but before the offer expires will receive the purchase price of $1,000 per $1,000 principal amount. All tendering noteholders will additionally receive accrued interest up to, but not including, the date of payment for the notes.

Krystal said that holders tendering their notes will be required to consent to the proposed amendments, which would eliminate substantially all of the restrictive covenants contained in the indenture. Holders may not tender their notes without also delivering consents or deliver consents without also tendering their notes.

Adoption of the amendments requires the consent of holders of at least a majority of the outstanding principal amount of the notes.

The offer is conditioned upon the company's receipt of tenders from holders of notes representing a majority of the outstanding principal amount of the notes, consummation of the anticipated financing, and other customary conditions.

Banc of America Securities LLC will act as dealer manager and solicitation agent in connection with the offer (contact the High Yield Special Products department collect at 704 388-9217 or at 888 292-0070). Global Bondholder Services is the information agent and depositary for the offer (call collect at 212 430-3774 or at 866 470-3700).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.